Energy Stocks Archives

Energy Stocks

What are energy stocks?

Energy stocks represent partial ownership in companies that supply electricity and fuel for the global economy. The energy sector in Canada is vast, comprising a large portion of the TSX. Energy stocks include:

Electric utility companies
Liquefied natural gas companies
Natural gas companies
Oil companies
Renewable energy companies
Solar energy companies

How can you pick energy stocks?

1. Look for companies with a promising future

It’s no surprise that the energy sector is under intense scrutiny. With climate change at the front of many people’s minds (from governments to investors), energy companies, old and new, are constantly adapting to a new world. Many people want cleaner energy. And it’s the energy sector’s challenge to make clean energy available — and profitable, too.

For that reason, investors will do well to look for innovative companies that are actively solving contemporary energy problems. Though we’re not suggesting investors ignore bigger companies in oil or natural gas, we are suggesting you keep an eye on the future as you’re picking your energy stocks.

Given the direction the world is going, ask yourself: who will be around in 20, 30, or even 40 years? That’s one of the biggest questions you can answer as an energy stock investor.

2. Analyze an energy company’s financial standing

The future of an energy company depends in part on how it’s handling its finances now. Given that prices within the energy sector are extremely volatile — just look at how the price of gas fluctuates — you want to be sure an energy company has the financial strength to withstand a recession. Some factors you may want to analyze include:

Strong balance sheet: the company should have lots of liquid cash on hand, as well as a capacity to borrow (if needed). It should also have low amounts of debt and a high investment grade.
Low production costs: the company shouldn’t be spending the majority of its revenue on producing energy. The company should have a stable revenue with minimal exposure to price fluctuations.
Conservative dividend payout ratio: though everyone likes to make money on dividends, if a company dishes too much out, it could end up cutting or reducing its dividend program during hard times.

3. Check here for our writer’s picks

Our writers are constantly analyzing the energy sector, as they look for stocks that are growing, as well as those that are under- or over- valued. Keep checking back here to see which stocks they recommend — and which they don’t.

To learn more about Energy Stocks, take a look at our Guide to Energy Stocks for all the details.

Check back here for the most up to date information about energy stocks.

Energy Stocks

3 Undervalued Canadian Oil Stocks

May 31, 2022 | Andrew Button

Energy stocks like Pembina Pipeline (TSX:PPL)(NYSE:PBA) remain undervalued, despite having already delivered strong returns this year.

Energy Stocks

Are TSX Oil Stocks Buys at Their Current Highs as Oil Hits US$115?

May 30, 2022 | Puja Tayal

The disruption in the oil supply chain has pushed its price to US$115. Should you buy oil stocks while they…

Energy Stocks

3 Top Energy Stocks You Can Buy for Under $75

May 12, 2022 | Aditya Raghunath

Blue-chip Canadian stocks such as Enbridge and Brookfield Renewable Power are well poised to outpace the broader markets in 2022.

close-up photo of investor Warren Buffett

Energy Stocks

Warren Buffett Is Loading Up on Energy: Should You?

May 10, 2022 | Adam Othman

For investors feeling trepidation regarding buying energy companies when the bullish momentum is so far into maturity, Buffett’s recent actions…

Business success with growing, rising charts and businessman in background

Energy Stocks

Passive Income: This Canadian Stock TRIPLED its Dividend!

May 2, 2022 | Andrew Button

Canadian energy company Cenovus Energy (TSX:CVE)(NYSE:CVE) just tripled its dividend.

Energy Stocks

Could Elliott’s Attack Really Create Value for Suncor Energy Investors?

April 29, 2022 | Vineet Kulkarni

While TSX energy stocks have more than doubled since last year, Suncor Energy stock has remarkably underperformed.

Energy Stocks

2 TSX Renewable Energy Stocks to Buy Today

April 25, 2022 | Joey Frenette

Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) stock looks like a bargain for those seeking renewable energy exposure amid inflation.

Energy Stocks

Canadian Natural Resources (TSX:CNQ) Hits a $100 Billion Market Cap: Should You Buy the Stock?

April 22, 2022 | Ambrose O'Callaghan

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) has grown into an energy heavyweight. Is the stock still worth buying right now?

Energy Stocks

3 Undervalued Canadian Oil Stocks

Energy Stocks

Are TSX Oil Stocks Buys at Their Current Highs as Oil Hits US$115?

Energy Stocks

3 Top Energy Stocks You Can Buy for Under $75

Energy Stocks

Warren Buffett Is Loading Up on Energy: Should You?

Energy Stocks

Passive Income: This Canadian Stock TRIPLED its Dividend!

Energy Stocks

Could Elliott’s Attack Really Create Value for Suncor Energy Investors?

Energy Stocks

2 TSX Renewable Energy Stocks to Buy Today

Energy Stocks

Canadian Natural Resources (TSX:CNQ) Hits a $100 Billion Market Cap: Should You Buy the Stock?

Energy Stocks

When to Sell Suncor Energy (TSX:SU) Stock

Energy Stocks

2 Energy Stocks Fly Higher Amid Recession Fears

Energy Stocks

Forget About Oil Prices With This 1 Stock

Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, June 30

Energy Stocks

How Would a Price Cap on Russian Oil Impact Canadian Energy Stocks?

Energy Stocks

2 Energy Stocks (With Dividends) to Buy Amid the Market Correction

Energy Stocks

2 Energy Companies to Buy When the Sector Hits Rock Bottom

Energy Stocks

Energy Stocks Dip: To Buy or Not to Buy?

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